Tax changes for 2025 filing: Here's what to know

Summary

Sharon Epperson explains the 2025 tax filing changes, focusing on new deductions for tips, overtime, and seniors. She cautions that these are deductions with caps, eligibility rules, and income phaseouts, not full tax exemptions. She also discusses expected larger refunds and says crypto 1099 reporting will be scrutinized more strictly, advising taxpayers to gather documents early.

• New 'no tax' provisions are deductions rather than full tax exemptions.
• Tips deduction is limited to qualified tip income and phases out at higher income levels.
• Overtime deduction applies only to premium pay and has single/married caps.
• Senior bonus deduction is based on age 65+, not Social Security receipt.
• The Tax Foundation expects a $129 billion individual income tax reduction.
• Average refunds could be higher this tax season.
• Crypto 1099 reporting will face stricter scrutiny.
• Taxpayers should collect prior-year forms and documents early.